Opening, closing credit card debt accounts can hurt scores - Bills.com News

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Opening, closing credit card debt accounts can hurt scores

Wednesday, Aug 26, 2009

When it comes to having plastic and credit card debt , less may end up being more.

Liz Pulliam Weston recently noted in her column for the Los Angeles Times that opening and closing multiple credit card accounts can leave a bad mark on a consumer's credit report. Pulliam Weston was responding a reader who was thinking about getting a credit card in order to take advantage of offers associated with the account.

"Openinga card just to get an introductory benefit, such as a pile of miles, isn't the best idea particularly if you would have to pay a substantial annual fee, which is typical of frequent flier cards, to keep the account open," Pulliam Weston wrote.

Pulliam Weston did note, however, that it is probably a good idea for consumers to have more than one credit card. Doing so will give consumers an option if their other card needs to be canceled because of a fraud concern
or if the credit issuer decides to change the card agreement.

When hunting for a new credit card, consumers may feel a bit more security because of recently enacted laws. The first provisions of the Credit Card Accountability, Responsibility and Disclosure Act have taken effect, allowing consumers to cancel card accounts if lenders change interest rates or fees. The full provisions of the act will take effect in February of 2010.

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